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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

LA Follows Springfield's Lead in Dropping Coal Alternative

LCG, August 26, 2004--Earlier this month, citizens in Springfield, Missouri voted down a new, coal-fired power plant near Springfield proposed by City Utilities of Springfield to meet future electricity requirements. On August 24, Los Angeles Mayor James Hahn directed Los Angeles Department of Water and Power (LADWP) to withdraw from the expansion of the coal-fired, Intermountain Power Plant in Utah and to pursue cleaner energy sources.

LADWP is the nation's largest municipal utility. For a number of years, plans have been underway to expand LADWP's coal investments by building a third, jointly-owned, 950 MW coal plant in Utah. LADWP's share of the $2.1 billion project would be $215 million. The mayor's directive is to immediately stop pursuing the coal plant and instead evaluate cleaner alternatives.

Under the direction of the mayor, the City Council and the Board of Water and Power Commissions, LADWP is developing a Renewable Portfolio Standard (RPS) to increase its share of power generation through renewable energy sources -- such as solar, wind, geothermal and biomass -- to 13% of its energy by 2010 and 20% by 2017. Last month LADWP issued a request for proposals (RFP) for renewable energy projects. By dropping the coal project, LADWP -- like City Utilities of Springfield -- will need to develop new plans as to how to supply its future electricity requirements.

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